UK & World VAT Calculator


HOW TO USE THE VAT CALCULATOR

Type in your Net Amount and the VAT Rate we will automatically calculate your VAT Amount and Gross Amount.

The VAT Amount line shows how much VAT has been calculated from the Net Amount. The Gross Amount is the Net Amount plus the VAT added to give you the gross total.

How To Calculate VAT at 20% (UK Standard Rate)

To manually calculate VAT is simple, multiply the cost by 1.2
Example to add 20% £100 x 1.2 = £120 – This gives you the Gross Amount including VAT.

How To Reverse VAT at 20%

Below is how to manually reverse VAT, alternatively our reverse VAT calculator works automatically.

£100.00 divided by 1.20 = £83.33
Subtract £83.33 from £100.00 (100 – 83.33) = £16.67 – this is the VAT Amount on an item sold for £100.00

Brief VAT History

During World War l Germany and France implemented a form of general consumption tax and becoming the first to have a VAT. In 1954 France implemented a modern variation of VAT in Ivory Coast and recognised the experiment as successful and introduced it themselves.

What is VAT?

VAT or value added tax VAT is a tax levied on most goods and services provided by VAT registered businesses. It was introduced to the UK in 1973 replacing the Purchase Tax. The current standard VAT rate is 20%, that is an increase from 17.5% on 4 January 2011.

Any UK business that provide taxable goods or services whose taxable turnover exceeds the threshold of £85,000 must register for VAT and once registered that business must charge VAT on the full sale price of the goods or services.

What Is The UK VAT Rate?

The UK VAT rate is currently at 20%, it is also the standard and default VAT rate, the UK also has a reduced rate and zero rate. It applies to most services and goods including: most hot and cold foods and drinks, including takeaway and restaurants foods, energy for businesses and clothes and footwear for those aged over 14.

VAT In European Union

Each EU member state must comply with the EU VAT rules and are required to adopt a value added tax. Currently standard VAT rate can be a minimum of 15% with one or two reduced rates, but those can not to be below 5%. Some EU members have agreed as part of their EU Accession Treaty to have a 0% VAT rate on certain supplies.

Member states are free to set rates higher then the minimum 15%, the highest rate currently in operation in the EU is Hungary at 27% while Luxembourg has the lowest at 17%.

The total VAT collected by member states is used as part of the calculation to determine what each state contributes to the EU’s budget.

Any changes to the VAT rules require unanimous agreement of all EU state members.

VAT Rates In The EU & selected None EU countries

EU CountryStandard RateNone EU CountryStandard Rate
Austria20%Australia10%
Belgium21%Canada5%
Bulgaria20%China13%
Croatia25%Colombia19%
Cyprus19%Egypt14%
Czech Republic21%Iceland24%
Denmark25%India5.5%
Estonia20%Jamaica12.5%
Finland24%Japan10%
France20%Mexico16%
Germany19%New Zealand15%
Greece24%Nigeria7.5%
Hungary27%Norway25%
Ireland23%Pakistan17%
Italy22%Paraguay10%
Latvia21%Peru18%
Lithuania21%Russia20%
Luxembourg17%Singapore7%
Malta18%South Africa15%
Netherlands21%South Korea10%
Poland23%Switzerland7.7%
Portugal23%Thailand10%
Romania19%Turkey18%
Slovakia20%Ukraine20%
Slovenia22%United Kingdom20%
Spain21%
Sweden25%

This is a selected list of countries that have a standard VAT rate and is correct on time of publishing, any updates will be correct when possible. Many countries have more rates, for example, United Kingdom has standard 20%, reduced 5% and zero 0%.